EU Ambassador, APTMA explore strategies for extension of GPS Plus

LAHORE, Sep 18 (APP):European Union (EU) Ambassador Raimundas Karoblis had an extensive discussion with the leadership of All Pakistan Textile Mills Association (APTMA) to strategize ways and means for extension of GPS Plus beyond 2027.

The Ambassador visited APTMA House on Friday along with Mr. Kert Ajamaa, First Secretary, Mr. Theis Munksgaard-Hansen, Manager Development Cooperation and Mr. Husnain A. Iftakhar, Sr. Economist/Trade Advisor where he was warmly received by APTMA office-bearers along with other senior members of the Association.

The Ambassador said Pakistan would have to show progress on implementation and legislation of various laws and conventions necessary for availing GSP Plus status.

He urged business community in general and the exporters in particular to adopt immediate measures for implementation of the requisite conventions and to engage with the government with reference to the concerns of the European Union Commission especially those relating to human and labour rights, governance and environment issues to facilitate the path for future extension of GSP Plus for the next ten years.

The Ambassador appreciated the textile industry for complying with the sustainability issues.

Earlier speaking on the occasion, Kamran Arshad Chairman APTMA said EU is Pakistan’s largest trading partner and the facility of GSP Plus has enabled Pakistan’s textile industry to compete in the region.  He said that GPS Plus has enabled Pakistan to export 78 percent of its products with duty free status in EU countries and eventually enhance its share in exports to EU, which has ultimately led to more employment, investment and technology upgradation besides encouraging foreign investment in Pakistan.

Kamran said the facility has played a huge role in Pakistan’s targeting to a Green Future and Zero Carbon emission, as several textile companies are expected to achieve zero net carbon emission by 2050.

Stressing on continuation of GSP plus facility until the economic stability of Pakistan, Chairman APTMA said the country’s exports can reap further benefits from the facility through further diversification. He apprehended that withdrawal of GSP Plus will plummet Pakistan’s exports besides removing edge and competitiveness over its competitors. The industry will suffer loss of not less than one trillion rupees per annum and will also be exposed to massive unemployment, large scale closure of mills and increase in poverty.

Kamran said that withdrawal of GPS Plus will have dominos effect collapsing banking sector as more than 40 percent of bank loans are obtained by textile sector. Real estate, goods transport and allied industries will suffer adversely causing massive unrest and severe set back to a series of initiatives relating to environment, human rights, labor and gender rights, anti-corruption, narcotics control etc.

Asad Shafi Chairman North told the visiting EU Ambassador that the textile industry has imported textile machinery from the EU member countries under its expansion plan worth billions of dollars. He hoped that GSP Plus facility will be extended in future to help Pakistan in poverty alleviation and improvement of take home salaries of workers due to enhancement of their skill. He urged the ambassador to facilitate in early finalization of FTA between Pakistan and EU on the pattern of India-EU Free Trade Agreement (FTA) before any withdrawal of GPS Plus.

Asad Shafi also updated the Ambassador about the APTMA’s strong advocacy for GSP Plus compliances and active role in development of Pakistan’s compliance infrastructure. He explained about the facilitative, regulatory and dispute settlement roles of the proposed National Compliance Entity.

He assured the Ambassador about APTMA’s full commitment to meeting GSP Plus obligations, addressing compliance gaps, reinforcing efforts relating to compliances and active engagement with the government and all stakeholders until the GSP Plus reapplication process is completed and a comprehensive National Action Plan is successfully developed.